Bankruptcy can be an effective way to settle most of your outstanding debts and allow for you to make a fresh start. However, the process can be quite complicated to go through, and it is in your best interest to get the assistance of skilled Beverly Hills bankruptcy attorney from Pillar Law Group on your side before you start. We are here to make sure that everything goes smoothly and that you take back control of your future.
There are many questions that our clients have as they are starting this process, and we are here to equip you with the knowledge that you need as you move forward.
Chapter 7 bankruptcy settles debts through the liquidation of certain assets. This can take as little as 3 months to complete, and in most cases you will be allowed to keep your home and car. Chapter 13, on the other hand, involves the restructuring of your debt. This plan allows you to pay back debt over a 3-5 year period.
The means test is a way to determine whether Chapter 7 or Chapter 13 fits your situation better. It measures the amount of disposable income in your household. If it is high enough, you will qualify for Chapter 13. Those with less disposable income will generally go through Chapter 7.
No, bankruptcy is a solid way to rebuild your credit by discharging debt. Though it will remain on your credit for several years, it offers a chance to begin earning a good credit score. In the long run, it is generally better to file for bankruptcy then continue to let unpaid debt harm your credit.
Yes. When you file for bankruptcy, something called an “automatic stay” goes into effect immediately. This stops foreclosure on your home, allowing you to take care of all bankruptcy matters without worrying about losing your home.
No! The automatic stay also immediately puts an end to creditor harassment. You will be able to regain peace of mind as soon as you file.